difenbaker
08-25-2006, 05:49 PM
Mobile-phone woes dog Samsung, LG
Published: August 17, 2006, 11:05 AM PDT
Firms should shift focus to low-cost devices to catch up in next-gen phones or mobile TV handsets, analysts say.
By Reuters
Wrestling with falling mobile-phone sales and shrinking market shares, South Korea's Samsung and LG yearn for the days when their high-tech, pricey phones were the talk of the town.
The South Korean phone makers face stalled volume growth, whereas rivals Nokia and Motorola are cashing in on trends to go "slim" and stylish in advanced markets or cheap in emerging markets such as India.
Analysts say Samsung Electronics and LG Electronics should shift their focus to low-cost phones to catch up or take the lead in next-generation technology phones or mobile TV handsets.
"Nokia, Motorola and Sony Ericsson have experienced tremendous growth globally over the last few years--much of this can be attributed to the low-cost handset market, an area where LG and Samsung are not particularly strong," said Bengt Nordstrom, an analyst with wireless consultancy inCode.
Another issue has been the companies' inability to establish a strong brand, analysts said. Nokia has the scale and brand to control the market, Motorola has achieved cult status with its blockbuster ultra-thin Razr, and Sony Ericsson has focused on music and photography, leveraging the Sony Walkman and Cybershot brands to enhance its appeal to younger users.
"Samsung and LG's lack of differentiation is holding them back," Nordstrom said.
http://news.com.com/Mobile-phone+woes+dog+Samsung%2C+LG/2100-1039_3-6106797.html?tag=cd.hed
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Published: August 17, 2006, 11:05 AM PDT
Firms should shift focus to low-cost devices to catch up in next-gen phones or mobile TV handsets, analysts say.
By Reuters
Wrestling with falling mobile-phone sales and shrinking market shares, South Korea's Samsung and LG yearn for the days when their high-tech, pricey phones were the talk of the town.
The South Korean phone makers face stalled volume growth, whereas rivals Nokia and Motorola are cashing in on trends to go "slim" and stylish in advanced markets or cheap in emerging markets such as India.
Analysts say Samsung Electronics and LG Electronics should shift their focus to low-cost phones to catch up or take the lead in next-generation technology phones or mobile TV handsets.
"Nokia, Motorola and Sony Ericsson have experienced tremendous growth globally over the last few years--much of this can be attributed to the low-cost handset market, an area where LG and Samsung are not particularly strong," said Bengt Nordstrom, an analyst with wireless consultancy inCode.
Another issue has been the companies' inability to establish a strong brand, analysts said. Nokia has the scale and brand to control the market, Motorola has achieved cult status with its blockbuster ultra-thin Razr, and Sony Ericsson has focused on music and photography, leveraging the Sony Walkman and Cybershot brands to enhance its appeal to younger users.
"Samsung and LG's lack of differentiation is holding them back," Nordstrom said.
http://news.com.com/Mobile-phone+woes+dog+Samsung%2C+LG/2100-1039_3-6106797.html?tag=cd.hed
:(